Meme Coins Plunge 25% as Crypto Fear Index Drops

Meme coins are experiencing a significant crash as the crypto fear and greed index plunges into the fear zone.

In the last 24 hours, the market capitalization of these tokens has dropped 25% to $29.8 billion, a sharp decline from over $63 billion earlier this year, resulting in a $33.8 billion loss for investors.

Major meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), have each fallen over 23% recently. Other tokens like Floki (FLOKI) have suffered losses exceeding 30%. This sharp decline coincides with a dramatic increase in trading volume, which surged 170% to over $9.72 billion.

Simultaneously, the open interest in futures contracts for these coins has also decreased.

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Pepe’s open interest has fallen from $146 million to $93.61 million, and Dogecoin’s has dropped from over $757 million to $536 million. Other meme coins are seeing similar declines.

The downturn in meme coins is part of a broader market trend, with major stocks also declining. Despite the current market turmoil, the heavy sell-off might present future opportunities.

Oversold conditions in these coins, marked by extremely low Relative Strength Index (RSI) values, could indicate a potential rebound if market conditions improve or if the Federal Reserve adjusts interest rates.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.